The German music-streaming site, SoundCloud, is reportedly trying to sell its company for a high price. They are estimating that the company is worth around 1 billion dollars due to its user-friendly fan base. SoundCloud Ltd. Founders, investors and recent firm Doughty Hanson & Co. investors are exploring a way to boost their profits by coming up with a strategic plan to sell the company for around their asking bid price of a billion dollars.
They claim that a recent company has been interested in making a deal for the ownership of the music-streaming site, but SoundCloud has yet to publicly announce the possible buyer’s name. SoundCloud Ltd. is ambivalent toward making a deal, hoping the potential buyer will agree to a billion dollar sale, yet the sale deliberations are still at an early stage.
SouldCloud has commented that their biggest issue for selling their company is that they are having a hard time finding a buyer who wants to purchase the site for 1 billion without any deliberations of lowering the bidding price. SoundCloud has estimated that their company has over 175 million users from all over the world who record, share and listen to music on their site. Last June, SoundCloud raised over 100 million dollars with the social media site Twitter, which estimated the new worth of SoudCloud would be over 700 million dollars due to its high funding profits.
SoundCloud released a premium version of their music-streaming site this March, to compete with other companies like Apple Music and Spotify. They allowed their customers to pay $10 dollars a month for ad free content and more song access.
The recent sale venture hasn’t helped bring in more profits to the company and continues to have a hard time bringing in new customers. In 2014, SoundCloud sales rose 54%, resulting in a 19 million dollar or 17.3 million-euro paycheck, but it wasn’t enough to pay back their revenue loss. SoundCloud was still in trouble financially. Since that year they spent 63.8 million dollars on the site and barely made any profit to cover their loss.
Since 2014, SoundCloud has yet to publicly post their revenue loss and profits for the last two years, making potential buyers question if their high bid price might be used to pay off previous debts.
